Intel Corp. Shares rose to close further in the last trading minutes on Thursday, after the chip maker unexpectedly released its quarterly results before the end of the trading session.
Intel INTC,
shares rallied to close at 6.5%, at $ 62.46, after the launch of holiday sales and a outlook that exceeded expectations and fell 2% in activity after business hours. The chip maker reported fourth-quarter net income of $ 5.86 billion, or $ 1.42 a share, compared to $ 6.91 billion or $ 1.58 a share a year ago. After adjusting for restructuring and acquisition costs, Intel reported earnings of $ 1.52 per share, fixed from a year ago.
Revenue fell to $ 19.98 billion from $ 20.21 billion last quarter. Analysts surveyed by FactSet estimated adjusted earnings of $ 1.11 per share on revenue of $ 17.53 billion, while Intel had forecast adjusted earnings of $ 1.10 per share on revenue of approximately $ 17.4 billion.
Intel’s data center group saw a 16 percent drop in revenue to $ 6.1 billion, while analysts expected it to be $ 5.48 billion. Intel’s largest segment – the computer-client, the traditional PC group – rose 9 percent to $ 10.9 billion, with analysts expecting $ 9.57 billion.
Intel reported that revenue from non-volatile memory solutions fell 1% to $ 1.2 billion, while Wall Street expected $ 1.08 billion. “Internet of Things” or IoT, revenue fell 16% to $ 777 million from $ 764.2 million. Mobileye’s revenue rose 39 percent to $ 333 million, while the street was expected to be $ 234.2 million.
For the first quarter, Intel forecast adjusted revenues of $ 17.5 billion and adjusted revenues of $ 1.10 per share. Analysts expect, on average, adjusted earnings in the first quarter of 93 cents per share from $ 16.08 billion in revenue.
“The demand for computing performance from Intel remains very strong, and our focus on growth opportunities is bearing fruit,” Intel CEO Bob Swan said in a statement.
Last week, Intel announced that Pat Gelsinger is returning to the company to take over as CEO of Swan.
In the last 12 months, Intel shares have gained 3%, while Dow Jones Industrial Average DJIA,
– which counts Intel as a component – increases by 7%, the S&P 500 SPX index,
rose 16%, the Nasdaq COMP Composite Index
increased by 44%, and the PHLX Semiconductor SOX Index,
increased by 64%.